The State Bank of Vietnam (SBV) will continue to stabilise the value of the national currency (VND) and improve its position in investment channels, considering this a long-term strategy in steering monetary policy, SBV Governor Nguyen Van Binh has affirmed.

Vietnam has achieved notable success in this task, he said, adding that over the past two years, VND deposits in banks have been profitable and safe.

Binh also advised people to continue to keep their savings in VND in banks because it is a safe and attractive investment channel, that can ensure the benefits of the depositors.

This is also the bank’s target in steering monetary policy, he stressed.

According to the Governor, the SBV has dealt with nine weak banks in a move to implement its project to restructure the banking system from now to 2020, which has been approved by the Prime Minister.

The bank will continue this task to ensure the project’s mid-term 2015 target and the long-term target to 2020, he said.

Binh further said that dealing with bad debts is urgent.

As the State budget has to serve socio-economic development and social security, the establishment of the Vietnam Asset Management Company (VAMC) is a suitable model to settle bad debts, easing the burden on the State budget, he said.

Though the company has not yet solved the problem completely, it still acts as an appropriate instrument for banks, enterprises, investors and the whole economy, he affirmed.

The bank has also issued policies to support agricultural production. To facilitate farmers’ access to loans, the SBV has applied a ceiling interest rate for long-term loans with the current rate being 9 percent.

If farmers or agricultural enterprises prove that their projects will be productive, they will be given access to loans, Binh affirmed.-VNA